ORGANIZATION STRUCTURE TRAINING

AT
FERTILIZERS AND CHEMICALS TRAVANCORE LIMITED.

A Report submitted in partial fulfillment of the requirements for the degree of

Master of Business Administration

By

ELAVUNKAL SAM ABRAHAM

REGISTER NUMBER
1727012

Under the Guidance of

PROF. LAKSHMI PRASAD

Institute of Management
Christ University, Bangalore

1
 JUNE 2017

ORGANIZATION STRUCTURE TRAINING

AT
FERTILIZERS AND CHEMICALS TRAVANCORE LIMITED

A Report submitted in partial fulfillment of the requirements for the degree of

Master of Business Administration

By

ELAVUNKAL SAM ABRAHAM

REGISTER NUMBER
1727012

Under the Guidance of

PROF. LAKSHMI PRASAD

Institute of Management
Christ University, Bangalore
2
 JUNE 2017

Declaration

I hereby declare that the Organization Structure Training report on FERTILIZERS AND
CHEMICALS TRAVANCORE LIMITED, has been undertaken by me for the award of Master of
Business Administration degree. I have completed this study under the guidance of Prof. Lakshmi
Prasad.

I also declare that this Organization Structure Training report has not been submitted for the award
of any Degree, Diploma, Associate ship, Fellowship or any other title, in Christ University or in any
other university.

Place: Bengaluru Signature_____________

Date: Elavunkal Sam Abraham
1727012

3
 Certificate

This is to certify that the Organization Structure Training report submitted by Elavunkal Sam
Abraham is a record of work done by him during the academic year 2017-18 under my guidance
and supervision in partial fulfillment of the requirements of Master of Business Administration
Degree.

Place: Bengaluru Signature______________

Date: Prof.
Institute of Management
Christ University
Bengaluru

4
Certificate by Corporate in Letterhead

5
 Acknowledgement

I am indebted to all the people who helped me accomplish this Organisation Structure
Training successfully.

First, I thank the Vice Chancellor Dr Fr Thomas C Mathew, Christ University for giving me
the opportunity to do my project.

I thank Dr. Suniti Phadke, Dean, Prof. Sudhindra S, Associate Dean, Prof. Shrikanth Rao,
Head of the Department, Institute of Management, Christ University for their kind support.

I thank Prof. Lakshmi Prasad for his support and guidance during my training. I remember
him with much gratitude for his patience and motivation without which I could not have submitted
this work.

I wish to express my sincere thanks to my corporate mentor, Mr M.Gunasekaran, Senior

Manager, Training Centre, FACT Ltd., for giving me an opportunity to work under his guidance and
successfully complete my training.

I thank my parents for their blessings and constant support, without which this training would
not have seen the light of day.

ELAVUNKAL SAM ABRAHAM

1727012

6
 Synopsis

OBJECTIVES OF THE STUDY

The main objective of the project was to make an overall study of the organizational framework
of FACT LTD and the various functions and inter -dependence of different departments.
The other objectives include:-

1. To have a clear knowledge of what an organization is.

2. To reinforce the theoretical knowledge acquired in terms of applications
3. To know about the various products and projects of FACT
4. To gain knowledge about different departments of the organization and the functions.
5. To know about the market share
6. To analyze the current financial position
7. To identify the SWOT of FACT LTD

Data collection
Direct Method

Through Interview & discussion

We interacted with the employees and understood the work and responsibility carried by each
of them. This helped us to understand the various department and their functions clearly. Further
discussion with them revealed some key functions and process carried by each department and the
departmental interdependence.

Indirect Method

Literature review:
Company’s internal records, Publication, Annual report, Journal, statutory report, website (official
site & others). The data collected company’s departmental manual added key information to this
report and help us to understand the process carried by each department in detail. Annual reports
are used as statistics to reveal the present scenario of the organization. previous report on
organizational study formed basis for shaping this report.

7
Data Authentication

The process chart prepared for each department was given to the respective department heads
for correction. The rough report prepared was also given to the organizational guide for correction.

LIMITATIONS OF THE STUDY

•Time was a major limiting factor.

•Secondary data available from company manuals were outdated
•Lack of co-operation from certain departments due to their work load.

8
Chapter Page
TABLE OF CONTENTS
No. No.
1 INTRODUCTION TO ORGANIZATION 11
2 ORGANIZATION STRUCTURE 19
3 FUNCTIONAL DEPARMENTS 22
4 SWOT ANALYSIS 50
FUNCTIONAL HIGHLIGHTS ACROSS KEY RESULT
5
AREAS 53
6 CONCLUSIONS 55

BIBLIOGRAPHY 57

9
Table Page
No. LIST OF TABLES No.

1 DISTRIBUTION OF SHAREHOLDING 15

2 CAPACITIES AND PRODUCTION 31

3 SALES TURNOVER AND PROFITABILITY 37

10
 CHAPTER 1

INTRODUCTION TO
ORGANIZATION

11
HISTORY OF THE ORGANIZATION

The birth of FACT emerged out of a crisis situation that guided the enlightened perception of a
far-sighted visionary. The crisis was that the land had been losing its fertility through long years
of repeated cultivation. The organic manure that we were putting back in the soil was hardly
adequate to replenish the soil or to correct the imbalance in the fertility status of the land under
cultivation. Drastic measures were needed to replenish the fertility and thus begins a tale of
initiative, enterprise, innovation and adventure, unheard in the annuals of industrial developments
in India. It was conceived by the foresighted statesman and administrator, Sir C.P. Ramaswamy
Iyer, the Dewan of Travancore (Kerala in older days was known as Travancore). THE
FERTILIZERS AND CHEMICALS TRAVANCORE LIMITED- popularly known as FACT, was
indeed a revolution when it was established as the first large scale fertilizer factory in the country.
Since then, it has played a major role in creating fertilizer consciousness among our farmers, and
giving a positive direction to the modernization of agriculture in India. And that, of course is an
interesting story- a story of never ending challenges and constructive responses.

FACT has been a pace-setter in marketing evolving a continuous and comprehensive package of
effective communication with farmers and promotional programs to increase the fertilizer
consciousness among our farmers. In fact, FACT was the first fertilizer manufacturer in India to
introduce the village adoption concept since 1968 to improve agricultural productivity and
enhance the overall socio-economic status of farmers. FACT has a well organized marking net
work, capable of distribution over a million tones of fertilizers. With the licensing of Cochin
Division in 1966 FACT further expanded and by 1976 the production of sulphuric acid,
phosphoric acid and Urea was started. In 1979 Production of NPK was commercialized.

The technical knowhow that FACT had obtained in the commissioning of various plants within
the company was decided to be used as a separate entity and the result of this is the FACT
Engineering and Design Organization more popularly known as FEDO. Established in 1965,
FEDO has expertise ranging from pre- project surveys and project implementation.

12
ABOUT FACT

MISSION OF FACT
To function as a dependable and globally competitive producer of fertilizer and other allied
products and to develop self reliance in the field of engineering and technology, especially in
the field of fertilizers, chemicals, petrochemical, oil & gas industries.

VISION OF FACT
To emerge as a leading company in the business of providing quality agriculture and industrial
inputs and providing engineering services for industrial and infrastructural facilities.

CORPORATE OBJECTIVES
1. To be of service to the nation and to contribute effectively to its economic well being and
growth through the production and marketing of fertilizers and chemicals.
2. To sustain and improve its pioneering role in the development of indigenous engineering and
technology through research and development.
3. To improve productivity and maintain high standards of quality and adopt effective measures
for controlling cost and minimizing dependence on imports.
4. To ensure for its customers the availability of its products and services on reasonable terms,
for its shareholders a fair return on capital invested and, for itself, development of adequate
internal resources for continual growth and expansion.

5. To actively work for rural uplift through guidance, advice and service to the farmers in co-
operation with all other agencies working for agriculture development and allied activities.
6. To develop, train and maintain a team of motivated and disciplined personnel with required
skills and abilities, and to encourage innovation and to create a condition for their functioning
and career development so as to improve their overall quality of life.
7. To project a favorable image of the company and its operations, in the society in which it
operates, amongst its customers and suppliers and amongst the public in general.
8. To continuously plan its future operations for sustained growth and stability for meeting the
needs of the country.

13
 CORPORATE GOALS
1. To achieve a net profit of 200 crores per year with a turnover of Rs.2100 crores by the year of
2016
2. To focus on cost reduction and technology up gradation in order to become competitive in
each line of business.
3. To constantly innovate and develop new products and services to satisfy customer
requirements.
4. To invest in new business lines, where profit can be made on sustainable basis over the long
term.
5. To compete through speed, agility and flexibility in recognizing and capturing opportunities
in existing markets.
6. To invest sufficiently to stay in the game but avoid premature commitment.

OWNERSHIP PATTERN
The Fertilizers and Chemicals Travancore Ltd (FACT), is a Schedule ‘A’ category Government of
India enterprise, under the administrative control of department of fertilizers in the Ministry of
Chemicals and Fertilizers. FACT was incorporated in 22/09/1943 and in 1960’s the Government of
India became the major shareholder.

Board of Directors manages the Organization. The Chairman of the Board of Directors is
the Managing Director. FACT has a full time Finance Director, a Technical Director and a
Marketing Director. There are also six part time Directors on the Board, nominees of Central and
State Government. Shares of the company are listed at National stock exchange of India (N.S.E).

14
DISTRIBUTION OF SHAREHOLDING

Category Number of Percentage of

Shares Shareholding

Government holding

Government of India 345465200 97.38

State Government 2585000 0.72

Sub total 348050200 98.10

Non promoter holding

Insurance companies 4026854 1.14

Sub total 4026854 1.14

Others

Private corporate
473597 0.14
Bodies

Indian public 2187434 0.62

NRI’s or OCB’s 14316

Clearing member 19573

Sub total 2694926 0.76

Grand total 3554771974 100.00

15
BOARD OF DIRECTORS

Shri. Jaiveer Srivastava Chairman and Managing Director (Acting)

Shri. S.K Lohani Director

Shri. Vinod Kumar Thakral Director

Shri. K P S Nair Independent Director

Dr. S Murali Independent Director

Shri. P Muthusamy Director (Finance)

Shri. V K Anil Director (Technical)

Shri. V Subramanian Director (Marketing)

Shri. Sham Lal Goyal Director

Shri. K M Gupta Director

Shri. J Vinayan Chief Vigilance Officer

Shri. Sreenath Kamal Chief Financial Officer

Shri. I S Sidhu CEO (FEDO)

CHIEF GENERAL MANAGERS

Shri. D Nandakumar FEDO

Smt. Ambika I S Marketing

Shri. Sreekumar M Production Coordination

Shri. Jacob Kurian Corporate Materials

Shri. Jayakumar A V Human Resources

16
PRODUCTS AND PRODUCT MIX

PRODUCTS

➢ Finished products
o Ammonium Sulphate - Udyogamandal Division
o Ammonium Phosphate / Complex fertilizers / Factamfos -
Udyogamandal Division & Cochin Division
o Caprolactum - Petrochemical Division
o Biofertilizers - Research & Development Division
➢ Exported Products
o Caprolactum - Petrochemical Division
o Ammonium Sulphate - Udyogamandal Division
➢ Byproducts
o Nitric Acid & Soda Ash - Petrochemical Division
o Gypsum - Udyogamandal Division & Cochin Division
o Carbon Dioxide Gas – Udyogamandal
➢ Intermediary Products
o Ammonia - Udyogamandal & Cochin Division
o Synthesis Gas - Udyogamandal Division
o Sulphuric Acid - Udyogamandal & Cochin Division
o Oleum - Udyogamandal Division
o SO2 Gas - Udyogamandal Division
o Phosphoric Acid - Udyogamandal & Cochin Division

Product Mix
Straight Fertilizers
o Ammonium Sulphate - Containing 20.6% N in Ammonical form and 24% sulphur,
an important secondary nutrient.
o Ultraphos - FACT markets imported Rock Phosphate containing
32%P2O5 under the brand name "Ultraphos". This high analysis fertilizer is
found suitable for application especially in Coconut/ Rubber/ Oil Palm/Tea

17
 Plantation.
Complex Fertilizers
• Factamfos 20:20:0:15 - NPK complex fertilizer - Factamfos or Ammonium
Phosphate contains 20% N in ammonical form, 20% P in water soluble form and
15% sulphur; a secondary plant nutrient, which is now attaining great importance
in agriculture. Factamfos also can be used for foliar spraying.
• FACT prepares crop specific standard mixtures for all crops in Kerala and also
special NPK mixtures for plantation crops like Tea, Coffee, Cardamom, Rubber etc.
• Rose Mixture - A fertilizer tonic for Roses.
• Vegetable Mixture - A special blend exclusively prepared for vegetable.
• Garden Mixture - A special nutrient combination for both flowering and foliage
ornamental plants.
• Imported/ Traded products - FACT has entered into direct import of MOP and
also trading of Imported Urea.

CHEMICALS
➢ Anhydrous Ammonia - FACT produces Ammonia of over 99.96% purity.
➢ Sulphuric Acid - FACT has one of the largest plants in Asia and it
manufactures Sulphuric acid of 98% purity.
➢ Caprolactum - It is the raw material for Nylon-6. The product quality of
FACT Caprolactum is among the best available in the world.
Nitric Acid and Soda Ash - Small qualities of these are obtained from
Caprolactum plant as byproduct.
➢ Nitric acid (55%)
• Capacity: 3800 TPA
• Concentration (by weight): 55% (min.)
• Ammonium Nitrate (by weight): 1% (max.)
• Specific gravity at 20 0C: 1.339
• Delivery: Ex-factory - tanker load
➢ Soda ash (off grade)
• Capacity: 4750 TPA
• Total alkalinity (as Na2CO3) (by wt): 95% (min.)
• Sulphate (as Na2SO4) (by weight): 1.5 to 3%

18
 CHAPTER 2

ORGANIZATIONAL STRUCTURE

19
ORGANISATIONAL STRUCTURE OF FACT

20
ABBREVATIONS OF ORGANIZATION CHART

DIR - DIRECTOR

TECH - TECHNICAL

C.V.O - CHIEF VIGILANCE OFFICER

C.P - CORPORATE PLANING

P.C - PRODUCTION COORDINATION

CD - COCHIN DIVISION

UC - UDYOGAMANDAL COMPLEX

F&F - FEDO & FEW

JGM - JUNIOR GENERAL MANAGER

UD - UDYOGAMANDAL DIVISION

PD - PETROCHEMICAL DIVISION

CM - CHIEF MANAGER

C.S.P - CHIEF SUPERINTENDANT PRODUCTION

C.M.E - CHIEF MECHANICAL ENGINEER

MGR - MANAGER

DIST - DISTRIBUTION

MTCE - MAINTENANCE

21
 CHAPTER 3

FUNCTIONAL DEPARMENTS

22
FINANCE DEPARTMENT

ORGANISATIONAL CHART OF FINANCE DEPARTMENT

23
OBJECTIVE
1.To Manage & account for the financial resource of the Organization, to forecast its
requirement in the future and plan accordingly and to check for deviation.
2. Report the financial performance of the company to Management, stakeholders & and to
comply with the Govt. rules and regulations

FUNCTIONS OF FINANCE DEPARTMENT

Some of the main functions are Payroll, billing, Preparation of journal, ledger and trial balance,
Banking, Financial resources & materials accounting, Budget preparation, Cost accounting,
Auditing, Preparation of financial statements & reports, Corporate Planning.

PROCESS OF FINANCE DEPARTMENT

Finance department in FACT is divided into four sections for carrying out its process. They
are:
1. Bills & Materials
2. Sales
3. Costing, MIS, Budget
4. Cash, Bank & Payroll

24
MATERIALS DEPARTMENT

ORGANISATIONAL STRUCTURE OF MATERIALS DEPARTMENT

25
OBJECTIVES
1. To control and account for the materials in the organization.
2. To ensure the availability of materials and its quality.

FUNCTIONS OF MATERIALS DEPARTMENT

1. Importing raw materials under the approval of safe purchase committee constituted by
the Board of Directors
2. Maintaining adequate raw materials needed for production
3. Procurement of Machineries, Intermediaries, equipment & spares
4. Inspection of Materials
5. Transportation of Raw materials, Products and Byproducts
6. Accountability for materials
7. Purchase of stationary and other Equipment needed by individual department
8. Vendor Development
This department is divided into 3 Sub Departments. They are:
1. Purchase
2. Stores
3. Traffic (Logistics)

PURCHASE DEPARTMENT
The purchase procedure covers the following areas of procurement of goods and services for the
company.
1. Capital items (For project and other purposes).
2. Equipment and spares.
3. Raw material & Intermediary materials
4. Package items involving design, supply, erection and commissioning.

26
Purchase Department is again divided into 3 sections. They are:
1. Raw materials
2. Equipment spares and supplies
3. FEDO & FEW Transport, Contracts and Stores

Raw Material Section

Objectives
1. Purchase of materials for production, from India and abroad
2. Make available adequate amount of material at the right time
3. Follow a fair & transparent procedure in the above activities
Functions
1. Importing raw materials under the approval of safe purchase committee constituted by the
Board of Directors
2. Procurement of Materials needed for production
3. Determination of quantity of materials required
4. Issue of Purchase order
5. Pre & post dispatch Inspections
6. Insurance
7. Payment

Raw materials are Sulphur, Rock phosphate, Furnace oil, Naphtha, Ammonia, Benzene,
Phosphoric Acid, Caustic soda and Sulpuric Acid.

Challenges to raw material procurement

1. Scarcity of Raw materials
2. Sky rocketing prices
3. Shipping Problems
4. Working Capital crunch

27
PRODUCTION DEPARTMENT

Objective
1.Production planning
2.Co-ordination of production function
3.Co-ordination with Maintenance and Production department.

Production process
Annual production targets for the next year are prepared based on installed production
capacity of the plant and production data for the previous year. Necessary feedback is
also taken from marketing department while fixing the production target. The production targets
thus fixed are presented to the corporate office for review and approval by CMD and the plant
managers are informed of the same. The production and consumption ratios for the previous
years are duly considered. All the data are compiled to form the production budget. A copy of the
production budget is sent to the finance department for preparing the finance budget. The
production plan and budget are then presented to the Government for approval. The production
budget then acts as the basis for further performance monitoring. Based on the production plan,
purchase department initiates action for procuring raw materials. In the event of any change in
the annual production plan becoming necessary, the corresponding change in the raw material,
requirements are intimated to the purchase department. Production planning department receives
data from all the plant and other interfacing departments and compiles them. Various MIS
reports consist of daily production reports, monthly reports and yearly reports they are sent to
the management

28
Organisational chart of production department

29
Plants at Udyogmandal division

1. Ammonia plant
2. Acid plants
3. Ammonium Sulphate plants
4. Ammonium Phosphate plant FACTOMFOS

Ammonia plant
The capacity of the Ammonia plant is 900 TPD. The investment for the plant was about Rs.618
Crores. The plant has economy scale size and employs state of the art technology for the process
engineering and control systems.

Sulphuric Acid plant

The Sulphuric acid plant is designed to produce 1000 TPD of monohydrate. The plant is based
on the double conversion, double absorption process and was designed by FEDO in
collaboration with Davy power gas Plant.

Phosphoric Acid plant

The Phosphoric acid plant is designed to produce 360 TPD of phosphoric acid through the
dehydrate route. The plant designed by FEDO in collaboration with “MESSER SOCIETY DE
PRAYON OF BELGIUM” employs the prayon convertible process to give a product having
strength of 30% phosphoric acid. A separate concentration section is provided to concentrate
this weak acid to strong acid having strength of 45% phosphoric acid.

Ammonium Phosphate Plant

The complex fertilizer plant was designed to produce quantities of N P K fertilizers of various
grades. FACTOMFOS consists of NPK and S in the ratio 20:20:0:15

Product
1. Ammonium Phosphate FACTOMFOS
2. Ammonium Sulphate
3. Muriate of potash

30
Challenges of production department
1. Raw material scarcity is upsetting the entire production plant
2. Working capital shortage is affecting the smooth functioning

Around the globe all industries are facing a very acute shortage of raw materials and various
natural resources. Sulphur prices over the year have gone up 10 times and 5 times in case of
naphtha. However, LNG can be substituted for naphtha which again is witnessing an acute
shortage. Some raw materials like Rock Phosphate and Sulphur are being imported, which
again invites shipping problems for FACT being its demand for raw materials is in low quantity.
In addition Fertilizer industry is looked upon as a sick industry, even from the government side,
the subsidy is not given by analyzing the real situation.

Capacities and Actual

Production : production

Licensed Installed 2016-2015 2015-2014

capacity capacity

1.
Udyogamandal
Division

Sulphuric Acid 402550 379500 199257 110582

Phosphoric Acid 33000 33000 0 0

Ammonium 225000 225000 128845 30478

Sulphate

Factamfos 181020 148500 115817 90800

Ammonia(900 326700 326700 182572 27121

TPD plant)

Bio Fertiliser 150 150 32 3

31
2.Petrochemical
Division

Caprolactam 50000 50000 13548 6759

Nitric acid 3800 3800 1376 605

Soda ash 4750 4750 1407 1134

3.Marketing
Division
16531 6989
Mixed Manures

32
MARKETING DEPARTMENT

GENERAL INFORMATION

Fertilizer Marketing is different from other product marketing. Fertilizer has a high demand.
Therefore, it can be termed as a seller’s market. However, its demand is seasonal and is very
much dependent on the Monsoon. Market penetration is very difficult, and once a company
captures a market its brand is substituted for the product. The brand image plays an important
role. The whole market is also dependent on farmer’s awareness about fertilizers. All of these
call for a planned marketing effort and huge requirement of funds to meet the seasonal demand
of fertilizer.

OBJECTIVES

• Monitoring of sales & distribution

• Study & respond adequately to the information from market research department
and from field establishment
• Liaison with bulk buyers, central and state government officials and officials of
fertilizers association of India

33
ORGANISATIONAL CHART OF MARKETING DEPARTMENT

34
FUNCTIONS OF MARKETING DEPARTMENT

> Sales
> Market Research
> Agronomy
> Preparation of sales report
> Processing and sending replies to audit queries at the divisional level
> Liaison with bulk buyers, central and state government officials and
> officials of fertilizers association of India
> Sales force motivation through internal and external training programs

SUB-DEPARTMENTSOFMARKETING DEPARTMENT.
1. Sales Department
2. Distribution Department
3. Agronomy

Sales Department

The sales department is headed by a Chief Manager who is responsible for sales coordination
of function across various depots, conduct an effective market research for analyzing market
and calculating the demand and finally promote the sales of FACT products. FACT today holds
major market share in Kerala, 11% in Karnataka and 6% in other states.

Sales Promotion Tools of FACT

FACT over the years have innovated various techniques of sales promotion. Many of them are
recognized as effective tools of promotion by nationaland international agencies. These techniques
are mainly grouped into two:
• Mass Communication Techniques
• Personal Contact Method
35
Marketing research

Marketing Research Department is essential for the success of marketing function. The main
function of marketing research is the collection,analysis and interpretation of data pertaining to
fertilizer market.
Functions
> Preparation of product wise, month wise annual sales plan for each area.
> Publication of annual report of division
> Monitoring and reporting of competitor's sales as per Performa prescribed
> Collection, scrutiny, analysis and compilation of region wise, area wise sales performance
of own and purchased products for providing
> Information to management on achievement against the target on a daily basis.
> Submission of monthly performance report of the division to the CMD
> Ensuring product availability, dispatch monitoring and inventory control
> Submission of various statements to FAI for publication in their fertilizer statistics
yearbook.

CHALLENGES OF MARKETING DEPARTMENT

> Improper Subsidy policy, Govt. Subsidy policy does not take into account the technology
used for production & cost of raw materials, and comes to the organization after a
long gap after actual sales, which leads to acute shortage of working capital.
> Lack of fund for research activities
> Narrow product range
> Unnecessary intervention of state and central governments in distribution & sales

36
SALES TURNOVER AND PROFITABILITY

Production (in Factamfose 20 : 20 605047 425530

Tonnes)
Ammonium Sulphate 128845 30478

Caprolactum 13548 6759

Sales (in lakh tones) Fertilizers 8.33 6.03

Caprolactum 0.12 0.14

Financial (in Rs. Turnover 214748 88487

Lakhs)
Profit I Loss (-)(before 4311.4 917.61
tax)

37
QUALITY ASSURANCE DEPARTMENT

At FACT, Quality has always been an article of faith & strictest international standards are
adhered to in producing the various products. The sophisticated micro processors, based digital
distribution control system, bring about efficiency in information management and process
optimization. The process control, based on online analysis assures consistency in quality
throughout the manufacturing process &also in the finished products.
A well equipped & modern lab provides reliable analytical support. Extensive trouble shooting
facilities aid the rigorous quality assurance programs. Exceptionally qualified experienced &
specially trained high caliber professionals provide expertise at all levels of quality control
department. A customer service cell comprising of trained technical experts provides extensive
products application support.

OBJECTIVES
1. Ensure that product quality matches with standard quality.
2. Achieve high levels of safety.
3. Minimize delay in procurement of raw materials.
4. Maximize capacity utilization.

38
ORGANISATIONAL STRUCTURE OF QUALITY CONTROL
DEPARTMENT

39
SAFETY DEPARTMENT
In the wake of rapid development of technology, more & more complex processes have come into
existence in industrial establishments paving the way for increased hazardous situations inside &
outside the factory.

SAFETY POLICY OF SAFETY DEPARTMENT

1. Provide safe & healthy work environment to all employees & maintain high degree of
safety standards in all the factory installations right from design stage to the disposal
stage.
2. Create & maintain safety consciousness among the employees & neighboring citizens
by way of safety education, safety training, safety propagation & all other possible
means.
3. Take all possible steps to prevent the potential disasters likely to emerge in the course of
employment or otherwise & maintain good work practices. Employees & citizens
residing in the neighborhood.
4. Monitor the environmental conditions regularly, conduct safety inspection, accident
investigation, take stock of safety standards by safety audit other techniques & initiate
appropriate action for ensuring safety of men & material & healthy environment.
5. Ensure strict compliance of all rules & regulations with respect to safety, health &
environment protection.
6. It is expected that the employees of FACT will co-operate & ensure their active
involvement in all activities connected with the accident prevention programme
7. FACT employees with the co-operation of neighboring society will extend all possible
efforts to prevent & contain any major disaster in case of occurrence in the factory in spite
of all the safety precautions.

DISASTER MANAGEMENT
Disasters like Bhopal tragedy have occurred at many places in the world causing heavy loss to
life & property. These emergency situations arise all of a sudden & create great havoc & should
be tackled as quickly as possible. A detail study has been made on “site emergency plan” for
FACT divisions & is readily available in the factory.

40
HIGHLIGHTS
• It is ensured that all personnel including contract men wear the appropriate personal
protective equipments before entering hazardous areas
• Hazardous works carried out only after obtaining Safety Permits which are valid for a
period of 8 hours only & require fresh permit for further extension of work
• There exists a well equipped fire force within the walls of FACT to cope up with any
unforeseen fire related emergencies
• An efficient fire alarm & fire hydrant system has been initiated in the organization.
Filtered water is stored in big tanks which are used by hydrants. All the plants &
offices are equipped with fire extinguishers.
• Strict traffic regulations & security measures by CISF are ensured to prevent any mishaps
• The employees working in areas like tank cleaning, use of LPG, furnace operation &
other hot works including use of chemicals are given strict instructions & measures
• Claims are provided to employees who suffer any mishaps while working within the office
hours.

• Safety mock drills are carried on a monthly basis to check the action of various forces
, their prudence etc
• Safety audit is conducted under the guidance of a safety committee to find a redressal for
any safety grievances, programs, implementation etc.
• Safety department provides safety equipment for accident prevention which include
different masks like cork masks , physical mask , respiratory mask
& different gloves for protection of hands like PVC glove , Asbestos glove
, cotton glove etc & also different kinds of safety helmets , safety shoes , gumboots goggles
& safety belts etc.
• To reduce sound pollution insulations are implemented on equipments.

41
RESEARCH AND DEVELOPMENT

GENERAL INFORMATION
FACT began research in a modest scale in 1962 with just four scientists. Over the years this
nucleus has grown in to a full-fledged but compact integrated division with a team of about 12
personnel. The division is recognized by the ministry of science and technology for in house
research and by the ministry of environment and forests, Govt. of India. R&D plays a vital role
in giving the company and its products the cutting edge in a competitive environment. FACT’s
well-equipped R&D section has advanced facilities equipped with pilot plants, modern equipment
and accessories. It is backed by a team of highly motivated research scientists. Various processes
have been developed and patented by FACT R&D division of which several have been
commercialized successful. Production of biofertilizers has commenced with an installed capacity
of 150tonnes per annum. FACT R&D division has got modern and sophisticated laboratory
and the facilities are continuously expanded and updated. A wide variety of tests conforming
to Indian and international standards are carried out. FACT R&D division has a unique mobile
laboratory equipped with state of the art instruments for monitoring, assessing, computing
and recording air data.

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ORGANISATIONAL STRUCTURE OF THE R&D DEPARTMENT

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OBJECTIVES
To carry out in-depth research, to provide specialized services to other divisions of the
organization, and is involved in the production of environment friendly biofertilizers .FACT
Research and Development Centre function with the aim of carrying out in-depth research in
new fertilizer formulations and value addition of existing product lines in the Organization.

BENEFITS DERIVED
1. The monitoring and controlling the quality of finished products has established the credibility
of the products of the company. The quality monitoring will also help to reduce the P2O5 loss due
to extra nutrient content in Factamfos 20:20:0:13.

2. R &D Centre has produced 32.31MT of Bio-fertilisers during the year 2008-
2009 and dispatched 28.09 MT for distribution to all the Southern states.

3.The ability of phosphobacter to solubilize the insoluble phosphate into plant assimilable
phosphatic forms is established from the study on the effects of Phosphorus Solublizing
Bacteria (PSB) on Rock Phosphate.

4. The study on the incorporation of zinc in NP fertilizer grade 16:20:0:13 resulted in finding that
zinc fortification is possible to the level of 2%.

5. R&D Centre has submitted its report on study on reducing sulphur content in Factamfos. A
trial run was completed at Cochin Division

6. The experiments to incorporate zinc in the complex fertilizers Factamfos 20:20:0:13 was
successful and the zinc-fortified Factamfos is now ready for launching.

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HUMAN RESOURCE DEPARTMENT

Human resource department is one of the most complex and challenging fields of Endeavour. It
is considered to be the most expensive and important resource of every organization. In FACT the
scope of human resource department is very vast.

OBJECTIVES OF HUMAN RESOURCE DEPT.

1. To provide, create, utilize and motivate employees to accomplish organizational

goals.
2. To secure integration of individual & group in securing organizational effectiveness.
3. To create opportunities to provide facilities, necessary motivation to individuals
and group for their growth with the growth of the organization by training
and development compensation.
4. To provide attractive, equitable, incentives, rewards, benefits, social security
measures to ensure retention of competent employees.
5. To maintain high morale, encourage value system and create
environment of trust, mutuality of interests.
6. To provide opportunities for communication of expressions,
participation, appreciation recognition and provide fair efficient leadership.
7. To create a sense and feeling of belongingness, team spirit and encourage
suggestions from employees
8. To ensure there is no threat of unemployment, inequality while adopting a
policy recognizing merit and employee contribution and condition for stability of
employment.

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 ORGANISATION STRUCTURE OF HR DEPARTMENT

FUNCTIONS OF HR DEPARTMENT
The main functions include:-
• Organizational Planning and Development
• Recruitment of Employees
• Training and Development
• Employee Records Maintenance
• Performance Appraisal
• Welfare Programs
• Wage and Salary Administration
• Job Evaluation
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Training centre
The training and development activities of the company have been centralized with effect from
April 2004. With this arrangement, the Management Development Centre, (MDC) the training
centres of Cochin division, Udyogmandal Division have been centralized into one department
called FACT Training Centre.
Training Centre of FACT has started job-oriented courses in Fire & Safety Engineering. New
Courses in Heavy Equipment Operation and Maintenance, Welding Technology and Process
Plant operation are being organized. These courses are planned to be offered in association with
Governmental agencies and statutory bodies. The objective is to convert the training centre in to
a “Skill Development Academy” with a view to provide facilities for skills development and
making educated youth employable.

Objectives of Training
i. To identify training needs of the employees as a whole on the basis of uniform
criteria.
ii. To impact required training, which equip the of employees consisting of officers and
workers of the company with knowledge and skill, required for improved performance.
iii. To meet training needs with specific reference to ISO 9001:2000 and ISO
14001:2004 standard requirements
iv. To maintain a database of training details and development activities.

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Organization structure of Training centre

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IMPARTING TRAINING
In FACT, there are basically 2 methods of training for employees. The method of training is
decided on the basis of requirements.
1) ON THE JOB TRAINING
This is specific to the job and concentrates on imparting knowledge and skill to the concerned
employee. Induction training include introduction of an employee to the organization and job by
giving him all possible information about organization’s culture , climate, objectives, policies,
practices, products etc .In job instruction training , necessary instructions about the job are given
by the concerned superiors. Instruction manual is also supplied for the same and it helps
employees to deal with work conditions. Job rotation is another on the job training in which
an employee is made to move from one job to another at certain intervals. Job rotation in FACT
is intradepartmental, interdepartmental and inter – divisional. Intra departmental job rotation
is done within the departments so that all employees are exposed to different functions carried
out in their departments Workers employed to different plants are rotated among the plants
at periodic intervals. These rotations give skill and knowledge to the employees in different jobs.
2) OFF THE JOB TRAINING
This method is employed to impart knowledge and skills in the employees in general areas
which enable them to perform the job better. The main objective of this programme is personality
development such as leadership quality, communication skills, attitude change etc. These
methods consist of lectures, conference, group discussions, case studies, role playing and
transactional analysis.

POLLUTION CONTROL DEPARTMENT

FACT continues to give top most priority to pollution control activities. FACT has already invested
Rs500 million in specially setting up pollution control plant at UD, PD & CD with a recurring Rs120
million annually. FACT UD & CD are ISO 14000 certified units. As a commitment to the mankind
the department has taken all necessary safe guards to prevent the water & atmospheric pollution
caused by effluent gases & liquids thrown out of the factory. The company maintains all effluent
parameters within limits as prescribed by the statutory authority. Liquid effluent & gas emissions
from plant coil are subjected to the state Government pollution board’s rules for the disposal of
hazardous wastes generated. The ambient air quality monitoring stations continuously monitor the
level of pollutants like sulphur dioxide, oxides of nitrogen, ammonia, carbon monoxide &
hydrocarbon.

FACT has a well established Effluent Treatment Plant (ETP). It was commissioned in 1981 at a cost
of Rs 167 Lakhs. Sources of effluents to the ETP include the wastes from the Sulphuric acid plant,
Phosphoric acid plant, Ammonium Phosphate 20-20 plant, Ammonia complex etc.

49
 CHAPTER 4

SWOT ANALYSIS

STRENGTH

50
 >High capacity utilization.
>High quality products. FACTAMFOS is a premium product in complex fertilizer
containing Sulphur
>Sustained operating parameters of the plant at good level and productivity of plant at good
level
>Well-qualified and technically skilled manpower
>Good support with farmers end segment
>One of the two producers of Caprolactum in India with world-class quality
>ISO Certification to most of the divisions
>Strong dealer network in South India
>Good engineering and consultancy design, perhaps one among the best in
Indian Fertilizer segment
>FEDO has own process know-how for hydrogen, Sulphuric Acid, Ammonium
Sulphate, DAP and complex fertilizers
>FEDO has worked in association with many international process licensors, and has acquired
the capacity of customizing and designing projects to the requirements of the Indian
consumers.
>FEDO is an approved center of surveyors and audit for portliness, installation, non-
destructive testing energy audits, ISO audits and so on.

WEAKNESS

> The government controls the prices of finished goods, but the prices of raw materials are
uncontrolled. So it is forced to operate in an uneconomic situation
> The average age of employee is very high (49 Yrs). The number of younger professionals
is decreasing and some managerial personnel are forced to handle more than one position
due to freeze on recruitment.
> Lack of product line diversification
> Lack of working capital resources
> Several unskilled jobs, which could be sub contracted are undertaken by the permanent
employees at high cost

OPPORTUNITIES

51
 > Less expensive alternative sources of energy and other inputs
> Acquiring technology to utilize other available resources
> Expanding production capacity to drive benefits of scale
> FACT ammonium sulphate has greater demand in foreign countries
> Opportunities for product diversification
> Very large asset base
> A premium product in the complex fertilizer segment containing
Sulphur
> Strong Marketing network in Southern India.
> 2150 acres of land and infrastructure facilities.
> Operational efficiency and high capacity utilization of plants.
> Scope for expansion and diversification.

THREATS

> Volatile in the prices of raw materials and feedstock like naptha, furnace oil etc.
> Inadequate compensation for FACTOMFOS under the present price concession
scheme.
> Inadequate realization from the sale of Ammonium Sulphate.
> Fluctuations in the price of caprolactum
> Non availability of sufficient quantity of BENZENE, Phosphoric acid etc.
> Unfavorable policy of the Government
> Diminishing market for Caprolactum
> Infiltration of more fertilizer products to the southern markets from other producers
> Inherent bottlenecks in infrastructure facilities
> Lack of product differentiation
> High pricing and scarcity of raw materials
> Severe liquidity crunch leading to non-operation of plant at higher capacity
> Non availability of sufficient working capital and severe liquidity crunch
> Decreasing market share of FEDO and FEW due to stiff competition.

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 CHAPTER 5

FUNCTIONAL HIGHLIGHTS
ACROSS KEY RESULT AREAS

The KRA in FACT are as follows:

53
 Materials Department:
➢ Procurement of raw materials in sufficient quantity and satisfactory quality
which would help in achieving the desired target output.

Finance Department:
➢ Budget and costing responsibility of finance department in co-ordination with
the production department to meet the targets within the financial limits.

Marketing Department:
➢ To connect with the market and maintain and improve sales target.

➢ To establish a good network with sellers and distributors as also with the end
users.

Human Resource Department:

➢ To provide efficient manpower for various projects and also to train the
employees to get used to latest technologies.

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 CHAPTER 6

CONCLUSIONS

FACT is the pioneer in fertilizer production which paved the way for increased productivity in
agricultural sector. It started with a vision to become a dependable global player in agriculture and
provide self reliance in engineering and technology especially in fertilizers. With this vision it
navigated through all difficulties which came on its way in the initial stages of growth. Setting up
55
of R & D centre was an envisaged activity to keep abreast with the latest development,
especially for Biofertilizers manufacture.
With commercialization of its production at Udyogamandal, it began its expansion stage to Cochin
division and finally to petrochemical division. But the reigning period of FACT came to an end
with the scarcity and skyrocketing prices of raw materials. It could hardly do anything to save
its declining trend as the product pricing is done by the Govt. of India. The show case example
has been the drift of the company to loss even after making a record production in 1999-2000.
Today, the organization runs at loss and is short of working capital. The working capital crunch
has stopped most of its envisaged activities. The organization as of now is stagnating and is in a
difficult stage of production. The immediate impact is seen in its low funding to R & D
department, reluctance in adopting new technologies, revising the corporate plans to the
bare minimum targets and reduction in welfare measures of the company. The trend has badly
affected its market share and has stepped behind in competing with its contemporary
organizations.
However, even in this tragic situation, the company is operating above 90% capacity
utilization. The management and its staff are putting their best to 97 sustain the company.
Trade unions are cooperating with the management by understanding the company’s situation
and responding to its need. The future however looks bright when the opportunities and
strengths of the organization are considered. FACT’s real strength is its experienced employees
who have tasted the different stages of its growth. Further, it tries to acquire new technology for
cutting the cost of production. Government’s new policy on subsidy may rewrite the history
of FACT

BIBLIOGRAPHY

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1. www.fact.co.in

2. Annual report of FACT (2015-2016)

3. Reference Reports

4. www.wikipedia.com

5. Yahoo Finances

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